Enterprises From New Zealand Record 6% Increase In High Budget Allocation Over The Past 12 months2 min read
“There is a marked increase from 2012’s figures, indicating a growing shift to the cloud. Though larger organizations generally spend more on cloud computing services, smaller and medium sized enterprises investing significant amounts of their IT budget have also increased.” This was claimed by Phil Harpur, Senior Research Manager, Australia and New Zealand ICT Practice at Frost & Sullivan.
Frost & Sullivan is a global research and consultancy firm. The company in its latest research, State of Cloud Computing New Zealand 2013, clearly indicates the potential in this specific geographical area to welcome the concept of cloud computing.
As an overview, let it be stated that Software-as-a-Service (SaaS) is already on its highs among these organizations, while the Infrastructure-as-a-Service (IaaS) is also displaying gradual progress.
Talking about the organizations using cloud systems, 63% of these, have recorded a high spending, while 33% accounted for a flat spending on cloud systems from their IT budgets. The relevant figures for the previous year were 57% and 40%, respectively. It can be inferred that organizations that were once contributing with a minimal interest, are now progressively shifting towards improved dedicated budgets to cloud computing.
The research also predicted that 25 percent of the companies, which have not yet joined the brook, will be starting up with office productive applications in the coming 12 months.
Due the recent calamities associated with cyber security and data privacy, such organizations are reluctant towards the migration of HRM, e-mail security, and Enterprise Resource Planning (ERP). However, operations like CRM, Desktop and Analytics, and Business Intelligence are likely to be drifted.
The research report has also provided a breakdown of organizations based on their spending. As reported, 32 percent of the subscribed organizations have dedicated more than 20 percent of their IT budget for cloud services and solutions. On the other hand, 47 percent of the rest claim to devote more than 10 percent of their IT spending on cloud.
State of Cloud Computing New Zealand 2013 has depicted that 88 percent of the organizations in New Zealand use e-mail through the cloud. Of this figure, 33 percent are the ones using public cloud, 38 percent limiting their selves to the private clouds, while the rest of 17 percent are practicing hybrid cloud models.
Frost & Sullivan’s Country Manager for New Zealand, Andre Clarke made his statement, defining the factors influencing such rapid adoption trends. Among these factors:
- Reduced IT cost is on the top of the list.
- Reduced risk of IT disruption due to external uncontrollable factors has also played its role in driving organizations to think over this innovative concept.
- IaaS provides an enhanced IT infrastructure at affordable cost with elevated efficiency.
- With well-defined patterns and assemblies, businesses can be more agile and flexible on cloud.
- At last but not the least, faster deployment characteristics of such solutions attract managers to get started within no time.
Another factor specific to this particular area is the participation on native providers. These are highly supported by the local authorities, in order to sustain Data Sovereignty.